5 ways Facebook could make more money off you

Some say the social network should charge for premium services

Dating Service

Facebook swung to a third-quarter loss in results released Tuesday, highlighting the need for the site to find new ways to earn revenue from it users. One option: playing matchmaker. For a subscription fee, it makes more sense for Facebook
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to get a piece of the action of the $1 billion a year online dating business, says K. Jason Krafsky, co-founder of the advice site, The Social Media Couple. Already, TheDatable.com and MatchMaker by Match.com help Facebook users mine their social networks for potential romantic partners. Datable.com links users up with people who have similar “likes” such as an independent bookstore or obscure folk singer. “There are many single people on Facebook who could benefit,” Krafsky says. This is an obvious way for the site to keep people engaged, he says, and earn more revenue. (Facebook did not respond to requests for comment.)

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Premium GPS

Over 600 million people use Facebook Mobile, the company reported in its latest results, but it lacks one function crucial to the smooth functioning of dating and other apps: a GPS feature that tells users when their friends are close by — not just when they’re online. Currently, Facebook users can only tell if their friends are close by if they have “checked in” at nearby restaurants or movie theaters, but those “check-ins” are sporadic and could be several hours — even days — old. As well as connecting with your closest Facebook friends, Facebook GPS, sold as an extra service, could also help to keep track of minors, experts say. There are apps like uKnowKids, which costs $9.95 month for a premium version, and GPS Tracking, which starts at $1.99. By harnessing GPS, “there are so many more things Facebook users could do with their smartphones,” Krafsky says.

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Digital Music

This month, Facebook launched an online gift store called “Gifts,” but some members say there are much easier ways to get members to spend money. “It would be cool if Facebook integrated digital music sales into the site,” says Milo McMahon, an independent musician based in Montreal. His suggestion: allow users to share music with their Facebook friends, and if they like the song, they can click “buy.” Apple tried to make a social network, Ping, on iTunes, but it closed the service last month and replaced it by integrating iTunes with Facebook and Twitter. The market is wide open for the biggest social network on the planet to pick up where iTunes left off, McMahon says: “It could also start a precedent of people making payments through their site for all kinds of products.”

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Promoted Accounts

This month, Facebook began testing $7 “Promoted Posts,” allowing members to use their credit or debit cards to pay to keep a particular post high up in other people’s news feeds. It may be a useful tool for those who want to alert their friends to their latest self-published e-book or even their witty one-liners. But $7 is expensive for one premium status update, experts say. “Promoted Accounts,” on the other hand, could be a bigger moneymaker and help self-employed people increase their visibility online without going to the trouble of creating a Facebook business page. “Promoted Accounts would be invaluable for job-seekers trying to connect with the right human resources companies, or musicians and writers who have their own personal brands,” says Jason Keath, founder and CEO of SocialFresh.com, a social media training company. “At the moment, there’s a big gap between a business page and an ordinary profile.”

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Account Management

Facebook users upload 200 million photos a day. While some people are bothered by this excessive sharing, others wonder if the site will ever set a limit on how many pictures can be stored in their accounts. As the amount of storage grows, experts say, the site may have little choice but to do just that. Eventually, Facebook may be forced to charge for storage with a model similar to DropBox or Apple’s iCloud service, says Cameron Yuill, CEO and founder of AdGent Digital, a digital media and technology company. “You might get free storage of your pictures and videos up to a certain amount and, after that, you pay,” he says. For those who don’t like to overshare, Facebook could subject nonmembers to additional advertisements and promotions, he says. The idea: pay more to see less.

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Account Management

Facebook users upload 200 million photos a day. While some people are bothered by this excessive sharing, others wonder if the site will ever set a limit on how many pictures can be stored in their accounts. As the amount of storage grows, experts say, the site may have little choice but to do just that. Eventually, Facebook may be forced to charge for storage with a model similar to DropBox or Apple’s iCloud service, says Cameron Yuill, CEO and founder of AdGent Digital, a digital media and technology company. “You might get free storage of your pictures and videos up to a certain amount and, after that, you pay,” he says. For those who don’t like to overshare, Facebook could subject nonmembers to additional advertisements and promotions, he says. The idea: pay more to see less.

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